articles Ratings /ratings/en/research/articles/200623-rural-hipotecario-xix-fondo-de-titulizacion-spanish-rmbs-notes-assigned-ratings-11539428 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Rural Hipotecario XIX, Fondo de Titulizacion Spanish RMBS Notes Assigned Ratings


Leveraged Finance: Rated U.S. BSL CLOs: Six Graphical Insights On Second-Quarter 2020 Rating Actions For Widely Referenced Corporate Obligors


SF Credit Brief: 63 CLO Tranches Downgraded By 1.2 Notches On Average In July 2020


Tender Option Bond Ratings Recap As Of June 2020: How COVID-19 Has Affected The Secondary Derivative Market


Servicer Evaluation: NorthMarq Capital LLC

Rural Hipotecario XIX, Fondo de Titulizacion Spanish RMBS Notes Assigned Ratings

Ratings List
Class Rating Amount (mil. €)
A AA (sf) 361.50
B NR 42.50
NR--Not rated.


  • We have assigned our credit rating to Rural Hipotecario XIX, Fondo De Titulizacion's class A notes.
  • Rural Hipotecario XIX will securitize a portfolio of Spanish first-ranking residential mortgage loans that four saving banks originated.

MADRID (S&P Global Ratings) June 23, 2020--S&P Global Ratings today assigned its credit rating to Rural Hipotecario XIX, Fondo de Titulizacion's (Rural Hipotecario XIX) class A notes. At closing, Rural Hipotecario XIX also issued unrated class B notes (see list above).

The transaction securitizes a portfolio of Spanish first-ranking residential mortgage loans that Cajasiete, Caja Rural, S.C.C., Caja Rural de Zamora, C.C., Caja Rural de Aragón, S.C.C., and Caja Rural Central, S.C.C. originated. The four originators are Spanish saving banks with a strong regional and rural presence in their home markets. This is the first transaction in the Rural Hipotecario shelf that we rate. The originators, which are not rated by S&P Global Ratings, remain the servicers of the loans. They are experienced servicers in previous multi-originator securitizations. Payment collections on the collateral are swept the next business day to the treasury account in the name of the fund. To address the risk related to loss of collections due to insolvency of the servicer, we have stressed commingling as a loss in our analysis.

Loans included in the pool are highly concentrated in the Canary Islands (34.82%), Castilla-Leon (26.74%), and Aragon (20.67%) regions. As per our asset specific criteria we have adjusted our weighted-average foreclosure frequency (WAFF) to account for geographic concentration. More than half of the loans in the pool were originated in 2017 or after. We have considered this in our seasoning adjustment to the WAFF. Of the pool, only 2.11% of the loans were granted to non-Spanish residents and 22.86% to self-employed borrowers. We have applied adjustments as per our asset-specific criteria for these characteristics. There are no broker-originated loans in the pool or commercial or mixed-use properties.

Of the pool, 98% are monthly amortizing floating-loans referenced to 12-month Euro Interbank Offered Rate (EURIBOR), paying on a monthly basis. The remaining 2% are fixed-to-floating loans, which will switch to 12-month EURIBOR by December 2021. The notes pay three-month EURIBOR plus a margin. The transaction is unhedged. We considered basis risk and margin compression under our cash flow analysis. Margin compression considers that around 60% of the pool can benefit from margin reductions if several financial products are contracted with the originators. Loans included in the pool are current or up to 30 days in arrears, with the latest ones representing only 1.5% of the pool. We have adjusted our WAFF accordingly in our analysis.

The issuer used the class A and B notes' issuance proceeds to purchase the "participaciones hipotecarias" (PHs) and "certificados de participacion hipotecaria" (CPHs). At closing, credit enhancement to the class A notes is provided by subordination, a reserve fund, and excess spread.

The reserve fund, representing 4.5% of the notes, was fully funded at inception by a subordinated loan. The amortization of the notes is fully sequential. As in other Spanish securitizations, there is a combined interest and principal priority of payments, with no interest deferral triggers because class B interest is always paid after class A amortization.

In view of the current macroeconomic environment, eligible borrowers benefit from COVID-19 related moratoria (either introduced by Royal Decree Law or as a part of the banking sector initiative or the servicers' own initiative).

The eligibility criteria do not exclude loans that benefit from any COVID-19 related moratoria. The loans in moratorium as part of the sector initiative will be limited to 10% of the initial notes' balance. These loans can take principal payment holiday for up to 12 months. We have considered this risk as part of our cash flow analysis. Consequently, we have assumed that 10% of the borrowers in the portfolio will request and be granted a moratorium or payment holiday during the first 12 months. As such, we have decreased scheduled collections of 10% of the collateral for the first 12 months and assumed that the maturity of these loans is extended by 12 months. Of the pool, 3.56% of the loans are in moratorium, with 3.27% and 0.29% in legal and sector moratorium, respectively.

Banco Santander S.A. is the treasury account provider and the paying agent.

We consider that the transaction's documented replacement mechanisms adequately mitigate its counterparty risk exposure to Banco Santander up to a 'AA' rating level under our current counterparty criteria (see "Counterparty Risk Framework: Methodology And Assumptions," published on March 8, 2019).

We believe the final documentation and legal opinions adequately mitigate counterparty and legal risk, in line with our criteria. We consider the issuer to be bankruptcy remote.

Our operational risk and structured finance sovereign risk criteria do not constrain our rating on the class A notes (see "Global Framework For Assessing Operational Risk In Structured Finance Transactions" published on Oct. 9, 2014, and "Incorporating Sovereign Risk In Rating Structured Finance Securities: Methodology And Assumptions," published on Jan. 30, 2019).

Our rating addresses timely payment of interest and ultimate payment of principal on the class A notes. Our analysis indicates that the available credit enhancement for the class A notes is sufficient to withstand the credit and cash flow analysis stresses that we apply at the assigned rating.

S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The consensus among health experts is that the pandemic may now be at, or near, its peak in some regions, but will remain a threat until a vaccine or effective treatment is widely available, which may not occur until the second half of 2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: As the situation evolves, we will update our assumptions and estimates accordingly.

Related Criteria

Related Research

Primary Credit Analyst:Rocio Romero, Madrid (34) 91-389-6968;

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to:

Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back